We get a lot of questions about Real Estate in Santa Clarita. This week we’re answering your question can you find a Rent-to-Own Property in Santa Clarita?

Can you find a needle in a haystack?  Of course you can, but the probability isn’t very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own.

When an owner is offering “rent-to-own” as a possible financing option, they are taking on a very high risk since in most cases, a rent-to-own buyer has a credit score that is less than impeccable.  Since an owner is assuming a higher risk, the terms for a rent-to-own must be more favorable for the owner.  This often leads to less than favorable terms for the buyer.  When looking at a rent-to-own as an option you can expect to provide a larger amount of money down and a higher interest rate than what a lender is currently offering. Especially with interest rates currently being historically low.

If you’re able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable. If you are in the market to buy, and would like a reference on a great local lender, contact us here, or at 661-373-2374.